Retail FDI will transform agriculture by integrating Indian farmers in the global supply chain.

Compared to power sector reforms, an infrastructure push or restructuring labour laws, the change in rules to allow 51% FDI in multi-brand retail may seem a relatively minor economic policy measure. However, the debate surrounding the retail decision - the government notified the new FDI rules on September 20 - is telling. It has regurgitated many of the shibboleths of Indian economic orthodoxy.

The fear of the foreigner; the disinclination to permit a modern market economy in Indian agriculture; the obsession with small-scale enterprise; and the dogged refusal to recognise the benefits of an economy of scale: all of these have been apparent in the past few days. It is crucial to interrogate these concerns and ask what the arrival of international retail chains can mean for India's farmers as well as consumers and for the economy generally.

Source :  articles.timesofindia.indiatimes.com